POST UTME AL-HIKMAH UNIVERSITY 2018 Economics | Objective

Are you preparing for POST UTME AL-HIKMAH UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
Consider a firm operating in a perfectly competitive market. If the firm's average total \cost (ATC) curve intersects its marginal \cost (MC) curve at a point where MC < ATC, what is the likely outcome for the firm's profit?
Correct A. The firm will experience a loss.
B. The firm will break even.
C. The firm will experience a profit.
D. The firm's profit will be maximized.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A consumer has a budget of ₦1,000 and faces the following price schedule: good A: ₦200, good B: ₦300. If the consumer's indifference curves are convex to the origin, what is the likely outcome for the consumer's optimal consumption bundle?
A. The consumer will consume only good A.
B. The consumer will consume only good B.
Correct C. The consumer will consume a bundle of both goods A and B.
D. The consumer will not consume either good A or B.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor input, and K is the capital input. If the firm's labor and capital inputs are fixed at 4 and 9 units respectively, what is the likely outcome for the firm's output?
A. Q = 8
Correct B. Q = 16
C. Q = 32
D. Q = 64

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
Consider a closed economy with a GDP of ₦1,000,000 and a GNP of ₦1,100,000. What is the likely outcome for the economy's net factor income from abroad?
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of goods A and B respectively. If the consumer's budget constraint is 2x + 3y = 12, what is the likely outcome for the consumer's optimal consumption bundle?
Correct A. x = 2, y = 4
B. x = 4, y = 2
C. x = 6, y = 0
D. x = 0, y = 6

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
In a perfectly competitive market, the supply curve is upward-sloping because
Correct A. Firms are willing to supply more at a higher price
B. Firms are willing to supply less at a lower price
C. Firms are willing to supply more at a lower price
D. Firms are willing to supply less at a higher price

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A firm's opportunity \cost of producing one more unit of a good is the
A. Price of the good
B. Price of the good minus the firm's fixed \costs
Correct C. Price of the good minus the firm's variable \costs
D. Price of the good plus the firm's fixed \costs

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
The demand curve for a good is downward-sloping because
A. As the price of the good increases, consumers are willing to buy more of it
Correct B. As the price of the good increases, consumers are willing to buy less of it
C. As the price of the good decreases, consumers are willing to buy more of it
D. As the price of the good decreases, consumers are willing to buy less of it

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A monopolist's marginal revenue curve lies below the demand curve because
A. The monopolist is willing to sell more at a higher price
Correct B. The monopolist is willing to sell less at a lower price
C. The monopolist is willing to sell more at a lower price
D. The monopolist is willing to sell less at a higher price

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
The elasticity of demand for a good is unit elastic if the percentage change in quantity demanded is equal to the percentage change in price
A. Greater than 1
B. Less than 1
Correct C. Equal to 1
D. Greater than -1

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor (L) is ₦50 per unit and the price of capital (K) is ₦100 per unit, calculate the \cost-minimizing input combination when the firm produces 100 units of output.
A. L = 10, K = 20
B. L = 20, K = 10
Correct C. L = 15, K = 15
D. L = 20, K = 20

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A monopolistically competitive firm faces the demand curve P = 100 - 2Q. If the firm's marginal \cost (MC) is ₦50, calculate the profit-maximizing output level.
A. Q = 20
B. Q = 30
Correct C. Q = 40
D. Q = 50

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A firm's total revenue (TR) is given by TR = 100Q - 2Q^2. If the firm's total \cost (TC) is ₦500 + ₦50Q, calculate the profit-maximizing output level.
A. Q = 10
B. Q = 20
Correct C. Q = 30
D. Q = 40

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A firm's demand curve is given by P = 100 - 2Q. If the firm's marginal revenue (MR) is ₦50, calculate the price elasticity of demand.
A. 0.5
Correct B. 1
C. 2
D. 5

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A firm's supply curve is given by P = 50 + 2Q. If the firm's marginal \cost (MC) is ₦100, calculate the price elasticity of supply.
A. 0.5
B. 1
Correct C. 2
D. 5

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A firm operating in a perfectly competitive market is characterized by which of the following?
A. A \single price maker
Correct B. A large number of firms producing a homogeneous product
C. A firm with a significant market share
D. A firm that can influence market price

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
The concept of diminishing marginal utility is related to the law of?
A. Diminishing returns to scale
B. Increa\sing opportunity \cost
Correct C. Diminishing marginal utility
D. Law of supply

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A country's GDP is calculated as the sum of?
Correct A. Consumption, investment, government sp\ending, and net exports
B. Personal income, corporate profits, and net property income
C. Value of goods and services produced within the country
D. Value of goods and services produced within the country plus net factor income from abroad

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A monopolistically competitive firm is characterized by?
A. A \single price maker
B. A large number of firms producing a homogeneous product
Correct C. A firm with a significant market share
D. A firm that can influence market price

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
The government's budget constraint is given by?
Correct A. G = T
B. G = T + I
C. G = T - I
D. G = T + I + X

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and it currently uses 4 units of labor and 9 units of capital, calculate the firm's current total \cost.
Correct A. ₦480
B. ₦720
C. ₦960
D. ₦1200

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is ₦20, calculate the firm's current elasticity of demand.
Correct A. 0.5
B. 1
C. 2
D. 3

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A government is considering a tax on a particular good. The supply curve of the good is given by Q = 100 + 2P, and the demand curve is given by Q = 150 - 3P. If the government imposes a tax of ₦10 on the good, calculate the new equilibrium price and quantity.
Correct A. ₦25, Q = 125
B. ₦30, Q = 100
C. ₦35, Q = 75
D. ₦40, Q = 50

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A firm's \cost function is given by TC = 100 + 2L + 3K. If the firm currently uses 5 units of labor and 8 units of capital, calculate the firm's current total \cost.
A. ₦250
Correct B. ₦300
C. ₦350
D. ₦400

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A government is considering a budget that allocates ₦100 billion to education and ₦50 billion to healthcare. If the government's total budget is ₦200 billion, calculate the government's budget deficit.
Correct A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support